Soybean processing to set new record, demand for oils grows amid energy crisis

Global soybean crushing volume in the 2025-2026 season (September 2025 – August 2026) will increase by 12.5 million tonnes, or 3.5%, compared to the previous season, to 370.6 million tonnes, according to a report by international consulting agency Oil World. Demand is growing for biofuels, including fuel made from processed rapeseed and sunflower seeds.

Growth drivers will include China (up 3% to 109 million tonnes), the United States (up 7% to 71 million tonnes), Brazil (up 5% to 61 million tonnes), and Pakistan (doubling to 3.2 million tonnes).

According to the March forecast by the US Department of Agriculture, global soybean crushing volume will increase by 2.5% to 368 million tonnes in the 2025-2026 season.

Rapeseed prices are currently supported by optimistic forecasts for demand for rapeseed oil as a biofuel feedstock and record global supplies, according to a review by Oil World.

Global sunflower seed exports could increase by 1.2-1.3 million tonnes in the 2025-2026 season (September-August) thanks to a sharp increase in supplies from Argentina. Sunflower oil exports from Argentina are also growing, analysts note.

Demand for vegetable oil is expected to increase in the energy market, but a decline in demand is expected in the food sector due to high prices.

A transition from abundant palm oil reserves to a decline in global exports is predicted, caused by slowing production and rising palm oil consumption in producing countries.

Experts warn that the consequences of rapidly rising energy prices could lead to a reduction in global meat demand, sharply reducing the profitability of the livestock industry.

Tags: soybean oil, soybean, biofuel